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For its three investment centers, Sarasota Company accumulates the following data: II III Sales $2,160,000 $4,320,000 $4,320,000 Controllable margin 1,620,000 2,332,800 4,065.360 Average operating assets
For its three investment centers, Sarasota Company accumulates the following data: II III Sales $2,160,000 $4,320,000 $4,320,000 Controllable margin 1,620,000 2,332,800 4,065.360 Average operating assets 5,400,000 8,565,000 10,800,000 The company expects the following changes for investment centers I, II, and III in the next year: investment center I to increase sales 15%, investment center Il to decrease controllable fixed costs $408,000, and investment center III to decrease average operating assets $376,000. Compute the expected return on investment (ROI) for each center. Assume investment center I has a contribution margin percentage of 75%. (Round ROI to 1 decimal place, e.g. 1.5%.) 11 111 The expected return on investment % % %
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